Wednesday, January 02, 2008

Everyone at Kessler International would like to wish our friends, clients and associates a happy and healthy New Year.  We view every new year as an opportunity to renew and refresh, and as such, we welcome the opportunity to reconnect with our affiliates and establish new relationships.  This year, we will be exhibiting at several tradeshows to share information regarding our computer forensics, forensic accounting, brand protection, and corporate investigation services, including LegalTech 2008 in New York, and the Inta Annual Meeting in Berlin, to name a few.  Don’t hesitate to contact us for more information or for passes to the exhibit halls where available.

As many of you know, we have added cell phone forensics to our service menu, and have had much success in gathering evidence for our clients in the past year.  Additionally, we have successfully completed several forensic accounting engagements for our clients, and some examples of reports that have been made public can be reviewed on our website, at http://www.investigation.com/reports.asp.

Last year also saw the opening of our new office is Honolulu, Hawaii, offering forensic accounting and computer forensics services.

Most importantly, last year marked our 20th year in business, proving that every year has provided us with opportunities to to work with new clients and to revisit existing clients.  We owe our success to all of you, and wish everyone peace and prosperity in 2008.

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Tuesday, June 12, 2007

Scam Emails Are Victimizing Many Business Owners.  Computer Forensic Analysts from Kessler International are actively investigating cases involving “phishing scams” that are using the email addresses of key employees contained on their company websites to target executive-level company managers. These fraudsters are customizing emails that deliver phony complaints from the Better Business Bureau as well as the IRS that contain spyware designed to steal and transmit all the data a victim enters into a website they visit.

This scam begins by directing the reader of an email to click on a link in the email to view details of a phony complaint filed against their company with the Better Business Bureau. When the reader visits the website a prompt to download an alleged complaint filed against them appears. Embedded within the complaint is a file that allows the fraudsters to gather all kinds of information the victim types into their computer and then transmits it to a third-party website. These third party websites are known to store the stolen data for later use by the hacker. The type of data being stolen includes login information, passwords, credit card and bank account numbers, social security numbers and other sensitive data.

We recommend that extreme caution be taken before opening any email from an unknown source which contains file attachments. Additionally Mr. Kessler recommends the use of a good anti-virus and anti-malware program stressing it must be updated regularly.

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Monday, March 12, 2007

Kessler International, the leading forensic accounting, computer forensics and corporate investigations firm, today announced the launch of its powerful new educational Forums on the www.thekesslernotebook.com website.  This valuable new research and information tool allows interested parties to submit inquiries to our experts via our “Ask the Forensic Accounting Expert”, “Ask the Computer Forensics Expert”, “Ask the Brand Protection Specialist”, “Investigative Software, Tools & Equipment”, and “White Collar Crime” sections.

Posted by Blog Admin in • Forensic Accounting • Brand Protection • Corporate Investigations • Computer Forensics
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Wednesday, February 28, 2007

How to Spot a Tax Return Mistake

You must be aware that whoever prepares your tax return, ultimately you are responsible for its contents.  The worst case scenario, if you use a “crooked” tax preparer, is jail time followed by severe financial penalties.  For most of us, though, a mistake on your return means either you owe more, or your refund will be delayed, perhaps indefinitely.  ’Got your attention now? Below are the most common errors committed on tax returns and how to avoid them: 

• It should be the mantra for everyone who prepares or has their tax return prepared- FIRST AND FOREMOST: CHECK THE MATH.  That’s right.  Simple errors in addition and subtraction account for most tax return errors.

• Double-check and then check your return again to ensure that your Social Security number is correct.

• Many of us work two or more jobs.  Check to make certain that your 1099 and W-2s are correct.  If not, have them corrected as soon as possible in order to avoid the IRS receiving conflicting information- a red flag for sure!

• Include your Social Security number on each and every page so that if the IRS deconstructs your return, that it can easily be reassembled.

• If you submit your return by mail, ensure that your Social Security number is on your SIGNED check along with the form number and tax year on the front of the check.

• While on the subject of signage, be sure to sign your return, include your occupation and, if filing jointly, ensure that your spouse includes their information as well.

• Keep copies of all documents sent to the IRS.  Be sure send your return by certified mail with return receipt.

Posted by Blog Admin in • Forensic Accounting
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Monday, February 19, 2007

Tax season is upon us and it appears that it is also open season on innocent taxpayers.  Tax scams and rip-offs are common on the Internet, in print and on the airwaves.
A recent study by a government agency found a disturbingly high percentage of commercial tax preparers made errors amounting up to $2,000 per taxpayer in improper refunds.

Beware “Instant Refund” Loans

You may think that because you’ve seen “their” commercial on TV and because they are a national chain that you are dealing with a reliable firm, but think again.  Quick-refund loans by commercial tax preparation firms are one of the biggest scams going- and completely legal.  The “tax prep” firm offers a short-term loan, often called an “advance” of the amount of the taxpayer’s anticipated return.  The interest on this loan, however often exceeds the amount of the return and then some! Additionally, fees may be gouged, no, charged for this service to persons who are later told they do not qualify for the “advance”.

Taxpayers are often lured by the promise of large refunds that the taxpayer may not be entitled to.  Moreover, some dishonest tax preparers will charge extremely high fees for their “expertise” when they are, in fact, skimming off the taxpayer’s return for themselves. 

Avoid Rip-Offs

How to avoid this scandalous practice?  Prepare or have your return prepared early by a reputable tax preparer (preferably one recommended by friends) and file either by mail or online- yourself.  As soon as you receive your W-2 is the optimum time.  The closer to April 15th one files, the longer the wait for your refund.

Taxpayers must remember that they are responsible for the accuracy of their filed returns, not the preparer, so it is very important to choose your tax preparer wisely.  Also be aware that many commercial tax prep firms hire and train their staff seasonally.  So the person on the other side of the desk may not be much better informed than you about taxation and finance.  Is that who you want preparing your taxes?

Internet Tax & Identity Fraud Phishermen

As many are now aware, Phishing on the Internet is one of the best ways to fall victim to identity theft.  Tax fraud Phishermen pose as major financial institutions, tax return preparers and even the IRS.  Their fictitious emails are intended to trick the unsuspecting into disclosing personal information. A typical “IRS” email will notify a taxpayer of an outstanding refund which they may collect if they provide their Social Security number. The fraud is perpetrated to gain access into the financial accounts of consumers, apply for loans in their names and run up credit card charges to their spending limits. 

Michael G. Kessler, President and CEO of Kessler International, the leading forensic accounting and auditing, computer forensics and corporate investigative strategies firm offers this advice:  “It is very important to know that the IRS does not contact taxpayers via the Internet.  If a taxpayer has concerns as to whether documentation allegedly from the IRS is authentic, they should call 1-800-829-1040 to confirm it.”

Posted by Blog Admin in • Forensic Accounting
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Wednesday, February 14, 2007

Face it:  You remember typewriters; your bright, quick, able and younger staff doesn’t.  The big screen you grew up in front of was a TV; they dawdled over breakfast in front of a 21” computer monitor. The fact is they are light years ahead of you when it comes to using high technology.  And some may even be using it to defraud your company.  The sad fact is many victims of insider techno-crime do not even realize that information theft has taken place….until it is too late.

Read the full article: http://www.investigation.com/press/press56.htm

Posted by Blog Admin in • Computer Forensics
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Friday, February 09, 2007

Chinese Professor “Bests” Fifth Data Encryption Algorithm

Now that we have your attention, let’s hear that again, in English this time!  A 41-year old Chinese college professor at the University of Beijing has cracked the world’s toughest computer encryption program, the SHA-1 (Secure Hash Algorithm).  For those of you who slept in the back of class, the SHA-1 is the U.S. Government’s most advanced data encryption program.  This action has apparently tasked the Government’s highest level programmers with replacing this now faulty program within the next five years. 

Whoa!  Cracking the code, however, doesn’t mean that it is open season for the “bad guys”.  The odds were truly stacked against Professor Wang Xiaoyun in the first place- about equivalent to wining Powerball several times!  A Beijing Digest has indicated that this SHA-1 encryption incorporates the world’s highest security Message-Digest algorithm 5 (MD5). Before Professor Wang cracked it, the MD5 could only be deciphered by the fastest exhisting supercomputer processing in excess of a million years.

So how did the Professor do it?  Although encryption analysis usually cannot be done without the use of computers, according to Wang, the computer only assisted in cracking the algorithm. Most of the time, Wang Xiaoyun calculated manually, and manually designed the methods.

Postscript:  Few corporations, if any, would have to be concerned about a mind of Wang Xiaoyun’s caliber hacking into their databases.  Alas, most computer fraud is perpetrated by employees of average intellect.  Kessler International is the leader in abating and preventing Cyber crime.  Learn how to safeguard your business from the commonplace hazard of Cyber crime, at: http://www.investigation.com/computer_forensics.htm

Posted by Blog Admin in • Computer Forensics
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Thursday, February 08, 2007

The phrase “White Collar Crime” has been around so long that few remember when the working world was divided into office workers who wore suits with starched and pressed white shirts, and laborers and tradesmen who favored denim overalls and rumpled blue chambray shirts.  The term was coined during the ‘Great Depression’ of the 1930s by a sociologist, a Dr. Sutherland.  The scientist (betraying his bias) sought to distinguish crimes committed by poor (blue collar), therefore desperate persons, from offenses committed by those enjoying a higher station in life. Although not clearly defined, the term today generally encompasses a variety of nonviolent crimes usually committed in business situations for financial gain.

While White Collar Crime is considered “victimless” it is not without cost.  According to the FBI, White Collar Crime in the United States alone amounts to more than $300 billion annually.

The most common White Collar offenses include: antitrust violations, computer and Internet fraud, credit card fraud, phone and telemarketing fraud, bankruptcy fraud, healthcare fraud, environmental law violations, insurance fraud, mail fraud, government fraud, tax evasion, securities fraud, insider trading, bribery, kickbacks, counterfeiting, money laundering, embezzlement and trade secret theft.

White Collar criminal activity can be the work of one “lone wolf” defendant, or a network of perpetrators, often within an organization. The penalties for white-collar offenses can be restrictive or require imprisonment and include fines, home detention, paying prosecution costs, forfeitures, restitution, and supervised release.

The FBI, the Internal Revenue Service, the Secret Service, U.S. Customs, the Environmental Protection Agency, and the Securities and Exchange Commission, participate in the enforcement of federal white-collar crime legislation. In addition, most states employ their own agencies to enforce white-collar crime laws at the state level.

Often, prior to involving the Federal authorities, business owners or individuals who suspect they are the victims of White Collar Crime, usually contact a Forensic Investigative firm to perform discreet computer forensic and forensic accounting procedures.  Once court-admissible evidence is obtained, the Federal agencies are contacted.

Kessler International is the leading authority on investigating and curtailing White Collar Crime. For nearly 20 years, Team Kessler maintained its global leadership in forensic accounting, computer forensics, and many other practice capabilities.  For more information about Kessler International and the services we provide, contact Michael G. Kessler at 1-800-932-2221 or visit the Kessler International website at www.investigation.com.

See also: Practice Capabilities:
http://www.investigation.com/money_laundering.htm

http://www.investigation.com/trademark_search.htm

http://www.investigation.com/copyshield.htm

http://www.investigation.com/anti_counterfeiting.htm

Posted by Blog Admin in • Forensic Accounting
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Friday, January 26, 2007

Stay Out of Jail!

Even if you do not visit “adult entertainment” sites, your computer could harbor pornographic images and other offensive and even illegal imagery. Yes, You!  There is a landmark court case under appeal where a teenager has been convicted of possessing child pornographic images.  The teen maintains his innocence.  His parents contacted a computer forensics specialist who has retrieved court-admissible evidence that the teen did not knowingly download the images, but that these photos had been transmitted via unsolicited emails purportedly about other topics.

It is easy to jump to the conclusion that the teen may have been curious and intentionally visited websites that included pornographic images of minors.  After all, the majority of computer forensic cases involving pornography bear this out.  In this instance, however, specialized software proved the teen’s contentions and laid the blame elsewhere.

What is so compelling about this case is that is could likely happen to anyone without their knowledge or consent.  Through email and other portals, the information superhighway not only stops at your door, it often leaves undesirable baggage behind.  Business and personal reputations built by years of hard work have been damaged as a result.

What can you do to safeguard your integrity and to check if your computer’s security has been breached?  Call Kessler.  Period.  Kessler International is known worldwide for the firm’s computer forensic capabilities.  Using proprietary and other software coupled with thorough and precise investigation processes, Kessler’s computer forensic investigations yield the both the evidence and the facts.

And, with careful monitoring procedures, Kessler can prevent the recurrence of unwanted data on personal computers.  Remember, when you only have time for the best, Kessler sets the standard for investigative excellence.

See also:  Practice capabilities-
http://www.investigation.com/computer_forensics.htm
http://www.investigation.com/cyber_evidence.htm
http://www.investigation.com/internet_monitoring.htm
http://www.investigation.com/tracing_hostile_contact.htm
http://www.investigation.com/cell_phone_forensics.htm

Posted by Blog Admin in • Computer Forensics
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Thursday, January 25, 2007

Computer Forensics Among Hottest Job Fields for 2007

According to the New York Post column, “HIRE LEARNING”, Computer Forensics remains one of the top 10 career options for 2007 and the coming decade.  Why?  The reasons are numerous, but here are two key factors:  In 2002, watershed legislation introduced the Sarbanes-Oxley Act, a major change in securities law that mandates publicly-traded companies be “transparent in their accounting practices”.  So going, going, gone are the days of “the cover up”- when businesses suspected employee fraud and took steps to bury, rather than to investigate “white collar” criminal activity.

Another factor in the growing need for Computer Forensics professionals is identity theft.  Statistically one in three of us has or soon will be victimized.  This crime is insidious as personal information can be obtained in so many ways, from stolen mail, to hacked retail databases. Brazen identity thieves have even stolen credit card numbers by standing on line behind a victim making a POS transaction at a store register and taking cell-phone camera photos.

While the Computer Forensics field is now being popularized, as with anything else, inexperience masquerades as “best in show”.  Who do you turn to investigate Computer Fraud?  It’s simple: Call Kessler. Period. With over 30 years in the business, Kessler International has the expertise, experience and integrity to uncover the facts and prevent future occurrences.  With propriety software, a staff certified and quantified in their respective disciplines, meticulous methodology and dedication to providing service excellence, Kessler is the company to call when you only have time for the best. 

See also:  http://www.investigation.com/computer_forensics.htm,
and http://www.investigation.com/cell_phone_forensics.htm.

Posted by Blog Admin in • Computer Forensics
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Friday, January 19, 2007

CONSUMER ALERT: What You Don’t Know Can Cost You! 

Most commercial and savings banks have discontinued the accounting practice of returning original cancelled checks to their account holders, replacing them with photocopies of both sides of each cancelled check instead.  This way, account holders have a record of who actually signed the back of the check to redeem its face value.

This signature is universally required for resolving countless business transaction disputes. The back-of-check endorsement also proves ownership to resolve warrantee claims and is admissible as evidence in court cases.  In short; no record of the back of each individual check, no legal documentation.

HBSC Bank, USA, N.A’s account holders have recently received written notice that they would no longer be receiving original cancelled checks, but photocopied facsimiles of these documents.  When these statements arrived, consumers noticed that they had received photo facsimile copies of the face of each check only.

When they contacted HBSC management about these anomalies, consumers learned that a) the original checks had been destroyed and that b) if the consumers wished to have copies of both sides of a check, a $5 charge per check would be incurred.  (Note:  The Blog editor is not certain which statement is more disturbing- that the checks have been destroyed; that there is a sizeable service charge to receive a photo facsimile of both sides of one’s cancelled check OR how it is possible to make a photo facsimile from a check that allegedly has been destroyed!)

For some time it has been the practice for major financial institutions to include photo facsimile checks in lieu of originals in their accountholder’s monthly statements.  Both Citibank, N.A. and Chase among many commercial and savings banks provide their account holders with monthly statements including photo facsimiles of their cancelled checks. Their monthly statements, however, provide BOTH sides of each cancelled check. 

This is food for consumer thought if one pays bills by check and may require proof “down the road” that they did indeed pay their gas, electric and fuel bills, mortgage, child care, credit card(s)……to name a few!

Posted by Blog Admin in • General
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Monday, January 08, 2007

Nationwide Employee Theft Statistics

Did you know that 13% of your employees would steal from you?  Statistical data compiled by Kessler International has been cited in the November 27th, 2006 issue of the prestigious trade paper, FinancialWeek. The Random Numbers segment of the weekly featured Kessler International’s employee theft statistics (culled from a nationwide survey by the renowned forensic accounting firm). To review the source material, which includes more relevant statistics for corporations and employers, see http://www.investigation.com/press/press4.htm. 

Posted by Blog Admin in • Corporate Investigations
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Friday, January 05, 2007

Cyber Attacks:  What They Are & What You Can Do About Them…

Cyber crime takes many forms.  One of the most insidious is the “cyber attack”, usually targeting an individual or corporation.  How targeted attacks (sadly, there are other variations on this theme) happen and what can be done to prevent or curtail them will be discussed in a series of postings here at The Kessler Notebook.

You might be wondering, “If the attack is virtual, where’s the harm?” A future blog topic may well be, “There Are No Victimless Cyber crimes”.  Cyber attackers may steal proprietary corporate or personal information.  Personal privacy is invaded as well, but the harm comes from what is done with the stolen information.  Cyber attackers commit acts of industrial espionage to defamation of character to identity theft. On the corporate scale, hundreds of millions of productivity hours are lost annually. And, when the security surrounding proprietary information that the attackers may or may not want or be able to use is breached, the cost to re-secure this data cannot be calculated.

How can you protect yourself and your business?  Kessler International, with a global reputation for successfully combating thousands of investigative cases involving corporate and cyber fraud, is the company you can trust investigate these potential destructive issues and to make recommendations to avoid recurrence.  Read more about it at http://www.investigation.com/press/press55.htm

Posted by Blog Admin in • Computer Forensics
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Wednesday, January 03, 2007

Kessler International, the leading forensic accounting, computer forensic and auditing firm, has opened two new offices recently, in Lancaster, Pennsylvania and Atlanta, Georgia. The new locations, in Lancaster at 2173 Embassy Drive, Lancaster, PA 17603, and in Atlanta at 260 Peachtree Street NW, Suite 2200, Atlanta, GA 30303, further expand Kessler’s nationwide presence. There are now 8 Kessler International locations nationwide (in addition to the Firm’s numerous offices in Europe and Asia), to meet their clients’ growing demand for the Company’s investigative and other specialized forensic services. With these new offices, Kessler International has expanded its premier investigative and forensic accounting services all along the Eastern seaboard, continuing to better serve as well as to continue to attract the nation’s most discriminating corporate, government and individual clients.

Michael G. Kessler, President & CEO of Kessler International notes, “Nationwide, demand is strong for high-caliber, discreet and thorough investigative and forensic consultants. We are experiencing a great demand for our services in the Middle Atlantic and Southern states.” Kessler continues: “These new offices additionally demonstrate that Kessler International knows the importance of building and maintaining solid business relationships and underscores our commitment to supporting these regions. The Company’s expansion into Pennsylvania and Georgia are highlights of a banner year wherein Kessler International’s highly-skilled staff and personalized service “raised the bar” even higher in ‘Setting the Standard for Investigative Excellence.’”

Some of the services offered by Kessler International‘s new offices include forensic accounting, internal corporate investigations, anti-counterfeiting and anti-diversion programs, computer forensics, cyber crime detection and evaluation, business intelligence and criminal and civil investigations. Additional areas of expertise include brand protection and asset tracing.

For more of Kessler’s long roster of “Success Stories” in 2006, please visit http://www.investigation.com/press.asp

Posted by Blog Admin in • General
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Thursday, December 28, 2006

When Every Byte of Data Matters

A wealth of personal information is stored, intentionally and sometimes not, on our cell phones. Data that has been forensically-retrieved from mobile phones is court-admissible, making the integrity of cell phone forensic techniques of great importance.  Cell phone forensics, therefore, is the science of retrieving data from a mobile phone, PDA or other hand-held device under forensically acceptable conditions. Whether working to document evidence of “white collar crime” or tasked by law enforcement to extract data for a criminal trial, the integrity of the firm selected is as important as the integrity of the data recovered.  For over 18 years, Kessler International has been a leader in the fields of forensic accounting and computer forensics. The Company applies its experience, expertise and professionalism to its newest forensic discipline- extracting data from hand-held electronics.


See Also: http://www.investigation.com/cell_phone_forensics.htm

Posted by Blog Admin in • Computer Forensics
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